OPENING AN ONLINE SAVINGS ACCOUNT

You may be hesitant and have never opened an online savings account. I have opened three in the past three years and all three of the banks essentially follow the same process. There are many security questions and precautions during the process to secure your information.


First, make sure the bank is FDIC insured. Next, begin your 'open an account' process. You will be asked your name, address, social-security-number, and a few password items. Most banks follow the same process for accessing your account. In all three instances, I had to:

• Enter an email address you will check frequently. This email address is the one the bank will send your log-in and password reminders when requested
• Choose a log in. Some banks strictly use account numbers, but if a bank offers a log in user name, I usually use it.
• Enter a password consisting of at least 6 digits and had to include at least one lower-case letter, one upper-case letter, a number, and a special character(!,@,#,$, etc.)
• Select and answer two-three security questions, such as "Mother's maiden name" or "City of high school." I found using only lower-case letters for these questions makes it easier to remember later on.
• Choosing a security image. Typically, you select a category, such as a flower, a ball, etc. and each time you log on an image appears pertaining to the category you selected. If a different category appears, you know something is wrong with the log in and may call the bank.
• Email/mail copies of your license and a utility bill to prove your residence.
• Set-up a connection with another checking or savings account to initially fund your account or to transfer money back-and-forth to your local bank. Every bank uses the same method here. They will deposit one or two transactions usually ranging from $0.001-$0.99. Once the deposit is made, you have to go to the online bank's website, log in, and confirm the amount and date of the deposit.
• Every bank offers "Remember This Computer" on log-in but I don't trust that enough to use it. It may be convenient to not be required to enter my password and go through the log-in process, but what if someone hijacks my computer?

That's it! Actually, it can seem tedious, but I have always appreciated the hassle to assure my money and personal information is safe.